Intersections And Inconsistencies: Examining The Overlap Between GST And Corporate Income Tax In India
- IJLLR Journal
- 13 minutes ago
- 1 min read
Mr. Atanu Chakraborty, B.B.A. LL.B., Army Law College, Pune, Maharashtra
Ms. Bhavya Jamwal, B.B.A. L.L.B., Army Law College, Pune, Maharashtra
ABSTRACT
The introduction of the Goods and Services Tax (GST) marked a significant shift in India’s indirect taxation framework, with the objective of simplifying tax compliance, reducing cascading effects, and fostering ease of doing business. Despite these objectives, corporate taxpayers continue to face considerable challenges arising from the concurrent operation of GST and the corporate income tax regime. The parallel application of these two tax frameworks has resulted in overlapping treatment of similar transactions, inconsistent statutory interpretation, and an increased compliance burden for corporate entities.
This article undertakes a doctrinal and policy-oriented examination of the interface between GST law and corporate income taxation in India. It analyses the treatment of subsidies, incentives, reimbursements, valuation mechanisms, and input tax credits under both regimes, highlighting areas of conflict and administrative fragmentation. By surveying statutory provisions, judicial decisions, and prevailing administrative practices, the article identifies significant gaps in legislative coordination.
The article argues that the lack of harmonisation between GST and income tax laws undermines tax certainty and adversely impacts corporate governance. It proposes targeted legislative and administrative reforms aimed at reducing interpretational conflicts, preventing economic double taxation, and improving regulatory coherence. Through a balanced reassessment, the article contributes to contemporary discourse on corporate taxation and tax reform in India.
Keywords: GST, Corporate Taxation, Income Tax, Double Taxation, Corporate Compliance, Indian Tax Law
